Environmental management - KUO - Annual Report 2025

IMPULSE

Message from the Chairman of
the Board and Chief Executive Officer

How to read this report

HOW TO
READ THIS
REPORT

GRI 2-3, 2-4

We present our ninth Integrated Annual Report, in which we reaffirm our ongoing commitment to sustainable management and transparent disclosure, in line with the strategic priorities that shape our Sustainability Model.

In this document, we report on our progress in managing Environmental, Social and Corporate Governance impacts, as well as the most relevant financial and operational results for the year.
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The Report details our sustainability performance during 2025, with a focus on continuous improvement and innovation in our business practices, aimed at generating long-term value for both our shareholders and all our stakeholders.

The printed version of this Report serves as an executive summary of the most relevant messages, results, and milestones of the year. To access the extended and detailed version—including expanded content and technical appendices—we invite readers to visit our website, where the complete Report is available.

Below the title of each chapter, we indicate the applicable GRI Standards and SASB metrics, as appropriate.
The Download section of the digital version includes the appendices corresponding to the main sustainability indicators, the GRI and SASB content indexes and relevant financial information.

For any additional information related to the content of this Report, please visit our website at www.kuo.com.mx or direct further inquiries to:

Corporate Headquarters
Paseo de los Tamarindos 400-B, Piso 31,
Bosques de las Lomas, Mexico City, CDMX,
Zip Code 05120
ir@kuo.com.mx

Leadership and Responsible Management

Sustainability Vision and Strategy

Risk Management and Monitoring

People

Community

Environmental Management

Environmental

Management

At KUO, we manage our environmental performance through a preventive and continuous improvement approach aimed at strengthening operational efficiency and long-term sustainability.

Our environmental management is based on the responsible use of natural resources, the optimization of production processes, and compliance with applicable regulations. Within this framework, we promote initiatives for the proper management of water, energy, waste, and greenhouse gas emissions through the adoption of efficient technologies and the strengthening of internal capabilities.

This approach integrates environmental management into operational and strategic decision-making, strengthening business resilience, mitigating environmental risks, and supporting sustainable operational continuity.

Further details on our environmental indicators are available in the ESG Indicators Appendix.

Water Management

GRI 3-3, 303-1, 303-2
SASB FB-MP-140a.2, RT-CH-140a.3

During 2025, we extracted 5,374 thousand cubic meters of water, representing a 2% decrease compared to 2024.

Water is a key resource for our operations; therefore, we adopt a responsible and efficient management approach. As part of our water strategy, we implement measures such as the reuse of treated water, recirculation within internal processes, and rainwater harvesting, with the aim of optimizing water use and reducing consumption.

We continuously monitor the quality of our discharges to ensure compliance with applicable regulatory limits. This effort is supported by internal audits and timely responses to inspections conducted by competent authorities, such as CONAGUA and PROFEPA, within a framework of institutional collaboration, transparency, and technical dialogue.

In the Pork Meat Business, we also maintained active participation in collaborative initiatives, strengthening relationships with research centers such as Universidad Autónoma de Yucatán and UNAM. These efforts aim to promote technical and innovative solutions to address local water challenges and support responsible water management.

Looking ahead, we will continue strengthening our water management through the consolidation of operational controls, technical upgrades to treatment systems, and coordinated efforts with authorities, with the aim of anticipating risks, ensuring regulatory compliance, and advancing toward increasingly robust, efficient, and sustainable water management.

Key Actions 2025

Regulatory Compliance

Robust controls and monitoring to ensure compliance with applicable regulations.

innovation

Progress toward compliance with NOM-001-SEMARNAT-2021 through pilot testing of new technologies.

Water Efficiency

Promoting reuse, recirculation, and rainwater harvesting to optimize water use.

Long-term Vision

Establishing a solid foundation for resilient water management.

We manage energy consumption and GHG emissions associated with our operations through
initiatives focused on energy efficiency, emissions reduction, and the continuous improvement of
our processes.

Energy and Emissions
Management

GRI 3-3: energy management and renewable energy,
GHGs emissions management, 302-1,
302-2, 302-3, SASB TR-AP-130a.1

We recognize that our energy footprint extends throughout the value chain; therefore, we promote collaboration with suppliers and research centers to drive the adoption of best practices and technological solutions that help reduce energy consumption and GHG emissions.

Additionally, we maintain a continuous record of energy consumption, which allows us to identify areas for improvement and track performance based on reliable data. This monitoring facilitates the implementation of mitigation and prevention measures aimed at reducing our carbon footprint and strengthening our operations to make them increasingly sustainable.

Key Initiatives by Business Unit

Pork Meat

Evaluation and implementation of renewable energy solutions, such as photovoltaic systems.

Use of biogas generated during processes for power generation.

polymers

Implementation of energy efficiency plans, with reductions in the consumption of natural gas, electricity, and steam.

Installation of fixed and automatic capacitors in various electrical networks to optimize energy performance.

Collection of 162 metric tons of post-consumer polystyrene, which were incorporated into the production process as raw material, preventing the emission of 544 metric tons of CO₂ equivalent through waste valorization.

TRANSMISSIONS

Development and implementation of preventive maintenance programs for electrical systems.

Investments in monitoring equipment for the continuous tracking of energy consumption.

Generation of key data to support future optimization projects.

This process is supported by internal control systems, training programs, and collaboration with authorized vendors for handling, transportation, and final disposal, ensuring responsible and traceable practices throughout the value chain.

Waste Management

GRI 3-3 Waste management, 306-2.

We apply a comprehensive approach to waste management, prioritizing the proper identification, sorting, traceability, and disposal of waste according to its nature, including hazardous waste, special-handling waste, and recyclable materials.

As part of this approach, we promote waste minimization at the source, optimization of production processes, and—where feasible—the reuse and recovery of materials, in full compliance with applicable environmental regulations and internal guidelines. These actions contribute to reducing environmental and operational risks, while strengthening control and transparency in waste management.

Waste Management Initiatives by Sector

CONSUMER SECTOR

• Food and processing facilities operate under an environmental management system aligned with ISO 14001, incorporating waste reduction goals.
• In 2025, there was an increase in value creation, linked to higher production volumes and the generation of by-products.
• By-products were reintegrated into internal processes, reducing the volume of waste sent for disposal.

INDUSTRIAL SECTOR

• Active post-consumer polystyrene collection program in Mexico City, Puebla, and Tlaxcala, enabling reintegration into the production chain.
• Implementation of the “Resi Recicla” program, through which volunteers trained more than 500 children on how to sort and properly dispose of plastics.
• Installation of recycling stations at an elementary school in Tlaxcala.